Chapmans sells Digital4ge after both parties agree to drop court proceedings
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Venture capitalist Chapmans has sold out of start-up accelerator Digital4ge..
Chapmans (ASX:CHP) will sell the early stage mobile technology development company, as well as social media marketing platform Visual Amplifiers (VAMP), to their founder, Ben McGrath, for $700,000.
The deal comes with some conditions — one being that all parties have to drop “all existing court proceedings and will take no further action in respect of existing court proceedings”.
There was no reference to what the court actions might be. Chapmans has been contacted for comment.
Digital4ge no longer has a functioning website or an up-to-date Facebook page. Calls to VAMP’s Australia, Hong Kong and Singapore offices went unanswered.
The deal also hands proxy votes for Digital4ge’s 46.67 million shares, or 10.84 per cent ownership, in software maker Reffind (ASX:RFN) to Chapmans.
Digital4ge will sell its 5.5 million shares in Chapmans for $27,500.
In an August 23 business update published via the ASX, Chapmans complained to investors that Digital4ge had not give them access to VAMP’s books.
“Chapmans has expressed its complete dissatisfaction with the Digital4ge board’s lack of provision of books, records and reporting on the performance and activities of what is now Digital4ge’s most valuable asset – Vamp,” Chapmans told investors in the update.
“As a public company with continuous disclosure obligations Chapmans finds this unacceptable and will continue to push for satisfactory disclosure in order to fully realise the value of Chapmans investment.”
Digital4ge holds a 60.61 per cent interest in VAMP.
Chapmans owned 15 per cent of Digital4age, had a $150,000 direct investment in VAMP, and bought into software maker Reffind (ASX:RFN), in March.
Digital4ge built a 45 per cent position in the listed tech company, before reducing that to about 35 per cent.
Chapmans tried to remove Mr McGrath from the Reffind board and replace him with their own man, Peter Dykes.
Mr Dkyes’ colleague Anthony Dunlop was already on the board.
Calls to Reffind’s Australia and US numbers went unanswered.
Reffind’s share price was at a six-month high on Thursday afternoon, of 2.3c.